Definition, Meaning & Synonyms

marginal-utility

Noun

/ˈmɑːrdʒɪnəl ˌjuːtɪlɪti/

Definition

The additional satisfaction or benefit gained from consuming one more unit of a good or service.

Examples

As you eat more slices of pizza, the marginal utility of each additional slice may decrease.
Understanding marginal utility can help businesses determine pricing strategies.
In economics, consumer behavior is often analyzed through the lens of marginal utility.

Meaning

Marginal utility measures how much extra satisfaction a person gains as they consume more of a product or service, helping to explain consumer choice and demand.